Question 1
Assume you earn
a year and your favourite sports magazine costs you
a year. Your demand for the sports magazine is likely to be
◦ perfectly inelastic.
◦ inelastic.
◦ perfectly elastic.
◦ elastic.
Question 2
Tennis balls cost
a set and tennis rackets cost
Which of the following is TRUE?
◦ The demand for tennis balls is perfectly inelastic since they can be used only if you own a tennis racket.
◦ The price elasticity of demand must be the same for both tennis balls and tennis rackets since they are complements.
◦ The demand for tennis balls is likely to be less elastic than the demand for tennis rackets.
◦ The demand for tennis balls is likely to be more elastic than the demand for tennis rackets.